FBND vs QQQ

FBND vs QQQ

Which is better, FBND or QQQ?

Long Term Mid Quality against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.

Lower Fees: QQQHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricFBNDQQQ
Expense Ratio0.36%0.18%Best
AUM$27.1B$483.5B
Dividend Yield5.16%0.44%
Holdings3,499107
YTD Return-1.15%+15.18%Best
1Y Return-0.70%+19.65%Best
3Y Return (annualized)+4.58%+24.60%Best
5Y Return (annualized)+0.10%+13.94%Best
Volatility (annualized)5.0%Best18.6%
Max Drawdown-17.3%Best-35.1%
$10,000 over 5 years$10,050$19,204Best
Fund FamilyFidelity Investments (US)Invesco (US)
CategoryFixed IncomeEquity
StyleLong Term Mid QualityLarge Cap Growth
InceptionOct 6, 2014Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Oct 9, 2014 to Sep 15, 2026 (11.9 years).

FBND vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

FBND vs QQQ Performance

Fidelity Total Bond ETF (FBND) is an ETF from Fidelity Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FBND returned -0.70% while QQQ returned +19.65%. Year to date, FBND is down 1.15% versus a gain of 15.18% for QQQ.

Over three years, FBND compounded at +4.58% per year against +24.60% for QQQ; over five years the annualized figures are +0.10% and +13.94% respectively. Across the full 12-year window we track, QQQ has the edge at +18.41% annualized vs +0.87%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 5.0% for FBND. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -17.3% for FBND and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.51. They move together some of the time, and apart the rest.

Fees and Cost Over Time

FBND charges 0.36% per year while QQQ charges 0.18%. On a $10,000 position that is $36 vs $18 annually, a gap of $18 per year that compounds over a long holding period. On income, FBND currently yields 5.16% against 0.44% for QQQ.

Holdings Overlap

QQQ already in FBND0.8%

At least 0.8% of QQQ's money is in holdings FBND also owns.

Stated as a floor: for FBND, our book for it covers 33.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 314 positions we hold weights for in FBND and 102 in QQQ, against full books of 3,499 and 107.

Top Shared Holdings

StockWeight in FBNDWeight in QQQDifference
TMUST-Mobile Us Inc Com Usd0.000010.15%0.82%0.67%

You are not choosing between two funds in isolation.

Whichever of FBND and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FBNDQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FBND or QQQ?

FBND has an expense ratio of 0.36% while QQQ charges 0.18%. QQQ is the cheaper option, by $18 a year on a $10,000 investment.

Which performed better, FBND or QQQ?

Over the past year FBND returned -0.70% vs +19.65% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), FBND annualized +0.87% vs +18.41% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FBND or QQQ?

QQQ has been the more volatile fund at 18.6% annualized versus 5.0% for FBND. Worst drawdown: FBND -17.3% vs QQQ -35.1%.

Should I hold both FBND and QQQ?

FBND and QQQ have a monthly-return correlation of 0.51, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, FBND or QQQ?

FBND yields 5.16% while QQQ yields 0.44%, so FBND currently pays the higher dividend yield.

Is QQQ better than FBND?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.